PrairieSky Royalty (TSX:PSK) ROCE %

: 11.25% (As of Dec. 2023)

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ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. PrairieSky Royalty's annualized ROCE % for the quarter that ended in Dec. 2023 was 11.25%.

PrairieSky Royalty ROCE % Historical Data

The historical data trend for PrairieSky Royalty's ROCE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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PrairieSky Royalty Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

4.06

1.51

5.42

12.96

9.74

PrairieSky Royalty Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROCE %																11.32	9.69	8.30	9.46	11.25

PrairieSky Royalty ROCE % Calculation

PrairieSky Royalty's annualized ROCE % for the fiscal year that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	314.2	/	( ( (3415.4 - 177.6)	+	(3307.7 - 96.4) )	/ 2 )
	=	314.2	/	( (3237.8	+	3211.3)	/ 2 )
	=	314.2	/	3224.55
	=	9.74 %

PrairieSky Royalty's ROCE % of for the quarter that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	363.2	/	( ( (3341.1 - 97.4)	+	(3307.7 - 96.4) )	/ 2 )
	=	363.2	/	( ( 3243.7	+	3211.3 )	/ 2 )
	=	363.2	/	3227.5
	=	11.25 %

(1) Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

PrairieSky Royalty (TSX:PSK) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

PrairieSky Royalty ROCE % Related Terms

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PrairieSky Royalty (TSX:PSK) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » PrairieSky Royalty Ltd (TSX:PSK) » Definitions » ROCE %

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Traded in Other Exchanges

PREKF:USA 7PS:Germany

Address

350 - 7th Avenue S.W., Suite 1700, Calgary, AB, CAN, T2P 3N9

Website

https://www.prairiesky.com

PrairieSky Royalty Ltd is the owner of subsurface mineral rights on a variety of royalty properties in western Canada. The company encourages third parties to develop these properties, while also seeking additional petroleum and natural gas royalty assets. Once PrairieSky has given a third party the right to explore, develop, or produce on its properties, the company collects royalty revenue from the development of petroleum and natural gas. Property arrangements can be contracted as lease issuances, farmouts, drilling commitments, or seismic option agreements.

Executives

Leanne M. Bellegarde

Director